Consolidating car loan into home loan
With mortgage rates still near historic lows, consolidating credit card debt in a refinance can substantially lower monthly expenses. With their savings dwindling and credit card debt mounting, they looked to their most valuable assets: their center-city Philadelphia home and a second house they were renting out.
Refinancing to pay off student loan debt might seem to add up on paper, but it’s actually risky when you consider the consequences.Spreading out debt over a term of 20 to 30 years can reduce your payments significantly.Additionally, mortgage rates tend to be lower than the interest rates on unsecured debts such as credit cards.If you fall behind on mortgage payments, the bank can seize your home through foreclosure.A student loan, on the other hand, is unsecured debt and the bank cannot seize your house or car if you fall behind on student loan payments (although they can garnish your wages).
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Indicate you want to include debt in your new home loan at the time of application.